Introduced into the House of Representatives yesterday (9 October), the Payday Super Bill will require superannuation contributions to be paid on the same day as salary and wage payments, in an effort to create more secure retirement outcomes for members.
With the reform set to take effect as of 1 July 2026, accounting body CPA Australia has acknowledged that super contributions being paid quarterly is “outdated and troublesome”.
CPA Australia’s superannuation lead, Richard Webb, said while the government is right to push ahead with the new reforms, he warned that there may be a high risk of “unintended consequences” regarding stress on small business cash flow and the impact of penalties for mistakes during the transition to the new regime.
“Some small businesses will face significant cash flow challenges as they adjust to the new regime,” he said. “This may be another compliance headache that many small businesses will struggle to cope with in such a short space of time.
“We are pleased that the government has heard our calls for more proportionate penalties for small businesses who fail to immediately comply with the new rules.”
“We welcome the assisted compliance period contained in the draft guidance released today by the ATO but note that it is not the same as if the bill formally allowed businesses time to adjust.”
Webb further flagged concerns relating to the superannuation transmission network, stating it may not be ready to manage increased traffic by 1 July 2026.
Meanwhile, Australian super funds and association bodies have unanimously welcomed the legislation’s introduction and have pushed for its swift passage.
Cbus Super acting chief member officer Bernie Dean said the fund has proactively recovered more than $1.13 billion in unpaid super for members in an effort to remain committed to ensuring members are paid on time and in full.
“Super should be in accounts earning and compounding as soon as possible so that all workers can enjoy the dignified retirement they deserve, that’s why payday super is such an important reform for Cbus members,” Dean said.
“We urge the Parliament to pass these laws quickly, as they will improve the quality and security of retirement for all Australians.
“Our members have worked hard and deserve every dollar of super they are owed, payday super helps to deliver it for them.”
Shane Hancock, AustralianSuper’s general manager, retirement, acknowledged that the reforms will pose a “big change” for businesses.
“Our team have been focused on supporting business by delivering compliant, integrated payment technologies and tailored education so they can confidently meet their obligations,” Hancock said. “Research from ASFA found that four in five Australians agree super should be paid at the same time as wages. This is reform Australians want.”
According to data released by the Super Members Council, 3.3 million Australians missed out on super in 2022–23, losing an average of $1,730 each. Over a lifetime, that gap can leave workers up to $30,000 poorer in retirement. Women, who already retire with a quarter less super than men, remain among the hardest-hit.
